Used Car Kits – A Win for Both Dealers and Car Buyers
According to the 2017 Edmunds Used Vehicle Market Report, the sale of used and certified pre-owned vehicles is on the rise with 38.5 million vehicles sold in the second-hand market in 2016 – the highest percentage of used vehicles ever sold. The average age of a trade-in is six years (on a new car purchase), but most extended warranties won’t get you very far, and third party warranties can be extremely expensive. At SCL, we have partnered with Petra to bring you Petra Used Car Kits and Pre-Owned Protection Plans – value added products and services for pre-owned vehicles. Petra offers different Used Car Kit options that were designed to accommodate a spectrum of odometer readings, and even if a vehicle has 120,000 miles, it may still qualify.
What Do Used Car Kits Include
Petra’s Used Car Kits cover specific engine components within a certain mileage range and if continued over a certain period of time. The kits expire 4,000-6,000 miles after they are initially installed, and must first be used to service a vehicle prior to the odometer reaching 120,000 miles. However, if a Used Car Kit is applied at 30,000 miles and then again at 60,000 miles and a customer continues to return for services at designated intervals, then the service and warranty will cover the entire life of specific engine components. All services required by the Used Car Kit Warranty must be done through a commercial repair shop or professional installer. The maximum benefit provided by the plan is $2,500 USD, and vehicle owners will then be responsible for payment of any amount in excess of the maximum benefit to repair or replace the specified component. Petra Used Car Kits for both gasoline and diesel engines cover the following components:
- Engine Components: Pistons & Rings, Wrist Pins & Bushing, Rods and Rod Bearings, Intake Valves & Guides, Cylinder Liners or Bores, Rocker Arms & Pivots, Distributor Drive Gear, Cam Shafts & Bearings, Push Rods, Crankshafts & Bearings, Timing Gear or Sprockets, Turbo Bearings, Valve Lifters, Oil Pump.
- Fuel System Components: Fuel Injectors & Intake Valves (limited to malfunctions due to deposits).
- Cooling System Components: Heater Core, Water Pump, Freeze Plugs and Radiator. (Must use coolant that meets vehicle manufacturer’s specifications)
- Automatic Transmission System: Transmission Housing or Case only when damaged by an internally lubricated part covered under this plan. (Proper fluids using OEM specifications must be used)
- Power Steering System: Covers the lubricated parts contained within the Power Steering Gearbox or Rack and Power Steering Pump.
By using Petra’s line of products as part of the Used Car Kit, customers are increasing the longevity and efficiency of their used car engine components for optimal performance and durability. Beyond the benefits of using these products for the health of the engine, consumers will also have a 4,000-mile protection plan to give them added peace of mind when purchasing a pre-owned vehicle. The final benefit of Petra’s Used Car Kit is that they come with six months of roadside assistance and road hazard protection for added assurance. To a consumer, there is a lot of value included.
Excellent Benefits to the Consumer
Having a Petra Used Car Kit and Pre-Owned Protection Plan adds more value to a used car. Generally, used cars sold on the lot are driving away with a 30-day warranty where the dealership will only cover specific components up to 50% and the owner covering the rest. Petra’s Used Car Kits not only add value to the consumer but also to the dealership by creating a retention base to your service drive – encouraging customers to return again and again for in-house services. As a dealer principle or GM, you can invest a couple hundred bucks up front and then pass those savings along to the customer by giving them a $4,000-6,000 warranty on their used car. If a customer chooses to continue using the Petra Used Car Kit services over time, they have the ability to extend their warranty even longer, up to 120,000 miles. The Kits offer instant value to a customer because they add mileage coverage to their used car purchase right out of the gate, and customers will generally pay a bit more to know that they are getting as much security and coverage as possible.
Excellent Benefits to the Dealer
Besides creating customer retention despite a minor up-front investment, the Petra Used Car Kit and Pre-Owned Protection Plan is designed to be a pre-loaded service at the time of reconditioning of the vehicle. The price tag comes with the warranty already in place, and the Used Car Kits offer hard-add value that cannot be cancelled or removed. Since they are already pre-loaded prior to the time of sale, they cannot be opted-out of, which greatly reduces the possibility for a chargeback or a contract rewrite. As a dealership, you should strongly consider adding Petra Used Car Kits and Pre-Owned Protection Plans to your pre-sale used car checklist. There are a lot of things that go into re-conditioning a vehicle, and 9 out of 10 times customers are buying a used car with 45-50k miles on it. At that mileage, they’re not going to get a very aggressive warranty and 3rd party warranties are often cost prohibitive and not worth the investment. The main value of a Used Car Kit and Pre-Owned Protection Plan is that it adds warranty protection to a vehicle that otherwise wouldn’t qualify for coverage. As the dealer, by implementing these plans you are able to take in more used vehicle options, cover them and resell them. At the end of the day, one of the greatest benefits you will receive from this product offering is customer satisfaction.
The Bottom Line
Offering Petra Used Car Kits and Pre-Owned Protection Plans to your customers allows you to create a win-win situation for all parties involves. Your customer will leave the lot with peace of mind knowing that not only are the major components of their used vehicle covered, but they also receive 1-year of roadside hazard and roadside assistance. In the mind of a consumer, that motivates them to continue with their point of sale based on all of the benefits they are receiving for a marginal increase to their sticker price. For you as the dealer principle, GM, or dealership owner, the benefits are huge. For a minimal up-front investment you have the potential to increase your gross profit by decreasing chargebacks, preventing changes to contracts and eliminating the hassle of an unwind, all while ensuring customer satisfaction and retention.
Contact an SCL Consultant Today
In a wide range of industrial sectors, SCL is committed to being the number one logistics and solutions provider for the products that protect and optimize the machines that keep our country moving. We pride ourselves on remaining at the forefront of industry trends and technological innovations, and as the market continues to evolve, we are committed to providing extensive product and industry knowledge and total performance satisfaction for our customers. For information on how we can assist your fleet in choosing the optimal products at a competitive price, contact an SCL consultant today.